The current state of the solar industry & reevaluating

--- In ssi_list@... "isildurbane"
> --- In ssi_list@... "victoriatangoman"
> >
> > Under English Common Law, non-profits, foundations and other
> > entities that manage endowments are prohibited by law from
> > establishing perpetual endowments. They must distribute a few
> > percent of their endowment after they've been established for a
> > while. This is a very sensible prohibition for the tax favored
> > treatment of donations is to establish a public good, not to
> > accumulate capital for an endless period.
>
> Oh. Bummer. I stopped donating to charities because I thought it
was
> wasteful that they didn't save more. Maybe I'll rethink that. Now
> that I've done a little reading on the subject I see that lowering
> launch costs doesn't really fit the bill of nonprofits according
to
> law either. (scientific, charitable, educational, and literary)
Maybe
> just organize it as a contractual agreement between the users as a
> means toward lowering launch costs? Contributions plus interest
could
> be used as a credit toward launches. Launches would still go to
the
> highest bidder but people who contribute more and earlier would
have
> an advantage. Any legal ramifications of doing it this way?
>
> > Why not throw some numbers together and give us an idea of what
> > you're thinking?
> >
> > TangoMan
>
> Hmmm... I don't have any numbers to throw together. I think you
> understand the basic concept. The organization's annual budget
equals
> the return on the contributions which allows selling the services
at
> any price. I could make up some numbers but I don't think it will
> illustrate it any better. You all probably know already what
compound
> interest can do given enough time so I won't bore you with that.
>
> Joe

Here's some foood for thought. There's really no need that the
trust/foundation be established in the US. Go to the Turks and
Caicos, Isle of Man, Leichenstein, etc.

Here's a primer which describes the rule against perpetuities
established in English Common Law in 1620.
http://www.ideamarketers.com/library/article.cfm?
articleid315&wherefrom=PROFILE

Here is some info on Trusts established in the Turks and Caicos
which has suspended the law against perpetuities. Trusts can be
established for 100 years there.

http://www.caribcats.com/caribcats/dominica/trusts.html

Of course if you're counting on donations being tax deductable in
the US, then all of the above is for naught. If however, you can
accumulate a capital pool of $10 billion (non tax-deductable), then
setting up an offshore foundation, letting the capital compound for
50 years at an inflation adjusted rate of 9% will yield an endowment
of $740 billion. Then transfer the assets to a foundation and make
annual disbursements of 5% of the endowment and your foundation can
live forever. How much of a market effect will $37 billion have when
injected into the launch market?

TangoMan